More than three quarters of firms are still struggling to recruit new staff, a survey reveals.
The latest assessment by the British Chambers of Commerce (BCC) Insights Unit shows that the labour market remains challenging.
Hardest hit are firms in the hospitality sector where 82 per cent are the most likely to report difficulties in hiring.
Across the business world as a whole, fourth quarter results for 2023 indicate a rise in the percentage of companies experiencing problems, from 73 per cent to 76 per cent.
In the transport and logistics sector, 81 per cent of businesses attempting to recruit reported difficulties in finding staff.
Meanwhile 79 per cent of construction firms, 77 per cent of manufacturing companies and 66 per cent of retailers said they had experienced recruitment issues.
The ongoing recruitment crisis is detailed in the BCC’s Quarterly Recruitment Outlook, a survey of almost 5,000 UK firms.
Since the end of the Covid pandemic the proportion of businesses experiencing problems has never dipped below 70 per cent.
Many are currently struggling to increase investment in workplace training due to economic pressures, the survey indicates.
Labour costs are cited by 68 per cent of firms as a source of cost pressure, while 55 per cent of firms say they are worried about energy costs.
Jane Gratton, Deputy Director Public Policy at the BCC, said: “Our data shows the recruitment crisis continues to loom large for many businesses across the UK.
“Too many firms are still struggling to hire and retain staff. The situation in the hospitality sector is especially concerning.
“At the start of an election year, and with a budget just weeks away, it’s vital that politicians start outlining how we can plug these gaps and support more people into work.
“The Chancellor announced several welcome measures on apprenticeships in the Autumn Statement, but more action is needed. For example, increasing flexibility in the apprenticeship levy would help more people get the workplace training they need.”
